A German daily reported in early June on Garmin's negotiations to buy Navigon for around 50 million euros ($72.14 million), citing people familiar with the talks.

Garmin's personal navigation devices used to be a must-have gadget for car owners not long back, but competition from smartphones offering free navigation services has seen its key automotive/mobile segment shrinking.

The segment, which accounted for about 60 percent of Garmin's sales in 2010, has been shrinking for more than two years now, prompting the company to looks for new streams of revenue.

Garmin shares were up 1 percent at $32.83 in afternoon trade on Tuesday on Nasdaq.

(Reporting by Saqib Iqbal Ahmed in Bangalore and Tarmo Virki in Helsinki; Editing by Don Sebastian)